Tourism, a boost to GDP

By Gayan KANCHANA

Tourism not only contributes a large part to the GDP, but also generates significant indirect revenue. The direct contribution of the hospitality and tourism industry to world GDP is 9.0 percent and the indirect contribution is 2.8 percent, Tourism and Hospitality Confederation (CTH) General Manager Ian Pack said.

Despite the global economic downturn, tourism has shown a significant real growth since 1988.

The future of the industry is expected to accelerate in the next ten years. He was addressing a seminar organised by the Thames College Hospitality and Tourism Management Postgraduate program.

Over the past two decades, there were ups and downs in the global tourism sector, from 1989 to 2000, there was a 4.0 percent growth rate in the industry. In 2000 up to 2011 it was only 1.3 percent, but in 2011 to 2021, it is expected to grow by 4.5 percent. This growth will be sustained across the globe, but it will be driven by Asia.

Europe will contribute 3.7 percent, North America and Asia will contribute 6.4 percent, he said.

"In addition to global growth, the tourism industry is facing major challenges. Changing tourism patterns, increasing information transparency, climate change and environmental demands, search for cost effectiveness, rising input costs, currency instability and seasonality of demand, are examples. Previously tourists were more concerned with the sun, sea and sand, winter mountain and weekend breaks, but now it has changed to cultural, eco-tourism, trekking, nature, conferences, religious, educational, sports and adventure.

Eventhough, Sri Lanka has the opportunity to develop tourism, as far as marketing is concerned Sri Lanka suffers from lack of visibility in the digital world.